A lender’s guide to obtaining finance without delay

A lender's guide to obtaining finance without delay



DFT spoke to development finance lender Ingenious for some insider knowledge on the best way to streamline an application for finance. .

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DFT spoke to development finance lender Ingenious for some insider knowledge on the best way to streamline an application for finance.

Ingenious had five key tips for developers and their brokers wanting to ensure swift access to funding:

1 Provide a full pack of information, as early as possible- This assists in making a quick and fully informed decision, whilst giving the lender more confidence in the scheme. 

2 Contents of your information pack- This should include contractor and developer track record and company information, plans and elevations, planning permission, comparable sales in the locality, background information on location and target market.

Lenders will typically also require development appraisals together with any other site     specific documents, for example any surveys or investigations that have been     undertaken.
3 Diligence- To process a loan application promptly it helps to ensure that full diligence has been undertaken on the site and end sales prices at the initial stage.  This helps to ensure that nothing will appear at a later point with the potential to delay the process.

4 Advisors- Ensure your advisors are instructed and lined up so that once the terms are agreed they can process documentation and reports quickly.

5 Communication- Keep direct lines of communication open between the lender and the principal at the borrower. This helps to ensure that any queries can be answered quickly without increasing legal fees or delaying the process.

On a recent transaction to fund an apartment development in Greater London, Ingenious provided first drawdown within five weeks of receiving information from the developer.
Ingenious, which launched into the sector earlier this year stated: “Ingenious can give a response within 48 hours of first contact and if the required information is provided, indicative terms for the loan can be provided at this stage.”

“We have a simple one-stage credit process which means that, at the point of committee approval, developers will have certainty that the loan will proceed.”

Click here for more information on Ingenious’ residential development loans


 



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